Yahoo sells off European comparison shopping site Kelkoo to PE firm

Yahoo (NSDQ: YHOO), which has been trying to sell off its European comparison shopping service Kelkoo for a while now, has finally found a buyer, according to a report: it has been sold to a little-known UK-based private equity firm called Jamplant, for something less than Euro 100m ($126m). Yahoo bought the service in 2004 for a price then of about 475m euros (now $598m). Also, the founder and ex-CEO of Kelkoo Pierre Chappaz wrote about the deal (in French) on his blog but again, Yahoo hasn’t said anything yet officially.

Robert adds: Yahoo UK confirmed the sell off to us. First sign of the sell-off came when Yahoo re-tooled Kelkoo’s Grenoble, France, HQ in September as an R&D centre. Chappaz refused to name the price but said it was “below 100 million euros” – that means Yahoo makes a loss of at least 375m ($472m) euros (not including any profits in made in that time, of course). Chappaz said: “The difference is the price of management incompetence that led Yahoo’s (stock price to fall) below $9.”

Never heard of Jamplant? You’re not alone. Chappaz said it’s a new investment unit created by the founders of that other price comparison site USwitch, which sold to EW Scripps (NYSE: SSP) for £210m in 2006. It seems the operators have not given up their hope of running a bargain-hunting engine, as the consumer economy begins to impact spending. From Yahoo UK MD Glen Drury‘s email to staff: “Philip Smyth, chairman of Jamplant, believes that, with our backing, Kelkoo should be able to accelerate its growth much faster as a standalone company.

Kelkoo has 270 staff in Grenoble and in London. Its latest business involved powering a white-label price comparison site for ITV (LSE: ITV) and similar deals with The Independent. Chappaz: “During the past year, several funds approached me to restart Kelkoo with them. I told them no. Despite my commitment to Kelkoo, I would prefer to devote myself to Wikio. The sell-off of Kelkoo by Yahoo … after the failed agreement with Google (NSDQ: GOOG) … illustrates the failure of this company to grow in the world of transaction services.”

From paidContent:
DVD sales down; Blu-Ray’s missing its mark: what’s Hollywood to do?
NYTCo relents, trims dividend; does it go far enough?
AP to cut 10% of jobs in 2009; mainly through attrition
Q3 online ad revs rise 11% – less than half Q307 growth rate: IAB
Industry Moves: News Corp re-ups Ailes for five years

From paidContent:UK:
Comment: BBC video ruling won’t save local press, will throttle auntie
Hi-media rejects reverse takeover bid from French rival Rentabiliweb
Ad forecast: Digital stagnating dramatically, but ’09 will be the bottom
BBC local reax: BBC ‘will consider options’, some breathe sigh of relief
BBC Trust: BBC must drop $100m local video plan; would hurt commercial rivals
Update: Microsoft says no to ACAP despite words of support